Breakfast briefing: Price cut for PS3 and Microsoft's court battle

• Yes, Sonyfinally did it - announcing a cheaper, smaller PlayStation 3 model. Given how much it costs Sony to make the PS3, no doubt as soon as it is released in September somebody will do a teardown to find out how much it costs to make. Is it less than the $805 iSuppli suggested it cost in 2006, or the $448 it cost last year?

• Earlier this week TechCrunch broke the news that MySpace was looking to buy iLike - an online music service that hooks into Facebook, among others. It's not finalised - AllThingsD reports that the deal could be on the rocks - but regardless, rumours of a $20m sale are unlikely to please investors, who had pumped $16.5m into the startup. Are the widgets coming home to roost?